ELGI EQUIPMENTS 2023-24 Annual Report Analysis

Mon, 8 Jul

ELGI EQUIPMENTS has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

ELGI EQUIPMENTS Income Statement Analysis

• Operating income during the year rose 5.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 9.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.4% in FY24 as against 17.9% in FY23.
• Depreciation charges decreased by 1.4% and finance costs increased by 40.8% YoY, respectively.
• Other income declined by 18.2% YoY.
• Net profit for the year declined by 15.9% YoY.
• Net profit margins during the year declined from 12.2% in FY23 to 9.7% in FY24.

ELGI EQUIPMENTS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	30,407	32,178	5.8%
Other income	Rs m	672	550	-18.2%
Total Revenues	Rs m	31,079	32,728	5.3%
Gross profit	Rs m	5,450	4,958	-9.0%
Depreciation	Rs m	777	766	-1.4%
Interest	Rs m	241	340	40.8%
Profit before tax	Rs m	5,104	4,402	-13.8%
Tax	Rs m	1,396	1,283	-8.1%
Profit after tax	Rs m	3,708	3,119	-15.9%
Gross profit margin	%	17.9	15.4
Effective tax rate	%	27.3	29.1
Net profit margin	%	12.2	9.7

Don't Miss: Key Information for Long-term Investors

ELGI EQUIPMENTS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 11 billion as compared to Rs 10 billion in FY23, thereby witnessing an increase of 8.1%.
• Long-term debt down at Rs 196 million as compared to Rs 216 million during FY23, a fall of 9.4%.
• Current assets rose 16% and stood at Rs 21 billion, while fixed assets rose 3% and stood at Rs 7 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 28 billion as against Rs 25 billion during FY23, thereby witnessing a growth of 13%.

ELGI EQUIPMENTS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	13,694	16,081	17.4
Current Liabilities	Rs m	10,211	11,040	8.1
Long-term Debt	Rs m	216	196	-9.4
Total Liabilities	Rs m	24,704	27,865	12.8
Current assets	Rs m	18,237	21,164	16.0
Fixed Assets	Rs m	6,466	6,672	3.2
Total Assets	Rs m	24,704	27,865	12.8

ELGI EQUIPMENTS Cash Flow Statement Analysis

• ELGI EQUIPMENTS's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion, an improvement of 73.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -820 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 billion from the Rs 84 million net cash flows seen during FY23.

ELGI EQUIPMENTS Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	1,659	2,877	73.4%
Cash Flow from Investing Activities	Rs m	-2,173	-1,010	-
Cash Flow from Financing Activities	Rs m	598	-820	-
Net Cash Flow	Rs m	84	1,047	1,147.6%

Current Valuations for ELGI EQUIPMENTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.8, an decline from the EPS of Rs 11.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 728.8, stands at 75.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 14.4 times, while the price to sales ratio stands at 7.2 times.
• The company's price to cash flow (P/CF) ratio stood at 46.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	95.9	101.5
TTM Earnings per share	Rs	11.7	9.8
Diluted earnings per share	Rs	11.7	9.8
Price to Cash Flow	x	31.1	46.6
TTM P/E ratio	x	37.8	75.3
Price / Book Value ratio	x	9.4	11.3
Market Cap	Rs m	129,196	181,137
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for ELGI EQUIPMENTS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY24, from 1.8x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 13.9x during FY24, from 22.1x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 19.4% during FY24, from 27.1% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 29.1% during FY24, from 38.4% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 12.4% during FY24, from 16.0% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.8	1.9
Debtors’ Days	Days	66	68
Interest coverage	x	22.1	13.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	16.0	12.4
Return on equity	%	27.1	19.4
Return on capital employed	%	38.4	29.1

To see how ELGI EQUIPMENTS has performed over the last 5 years, please visit here.

ELGI EQUIPMENTS Share Price Performance

Over the last one year, ELGI EQUIPMENTS share price has moved up from Rs 538.8 to Rs 728.8, registering a gain of Rs 190.0 or around 35.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 75,723.5 (up 0.8%). Over the last one year it has moved up from 40,670.4 to 75,723.5, a gain of 35,053 points (up 86.2%).

Overall, the S&P BSE SENSEX is up 22.0% over the year.

(To know more, check out historical annual results for ELGI EQUIPMENTS and quarterly results for ELGI EQUIPMENTS)